Is Linde Stock Underperforming the Dow?

With a market cap of $225.7 billion, Woking, United Kingdom-based Linde plc (LIN) is a global leader in industrial gases and engineering, supplying essential gases such as oxygen, nitrogen, argon, hydrogen, helium and carbon dioxide to customers across healthcare, electronics, chemicals and energy, manufacturing, metals and mining, and food and beverage.

Companies valued at $200 billion or more are generally considered “mega-cap” stocks, and Linde fits this criterion perfectly. 

However, the stock has decreased 10.7% from its 52-week high of $548.20 achieved on Jul. 7. Shares of Linde have declined 2.5% over the past three months, lagging behind the Dow Jones Industrial Average’s ($DOWI) 5.7% uptick during the same time frame.

Longer term, LIN stock is down 14.8% on a YTD basis, underperforming DOWI’s 11.4% gain. In addition, shares of the company have rallied 1.5% over the past 52 weeks, compared to DOWI’s 17.4% rise over the same time frame.

While Linde has been trading below the 50-day moving average since last month, it has climbed above the 200-day moving average in the last month. 

Linde shares dipped 6% on July 31 after the company reported its second-quarter results, as investors were disappointed by weaker margins and a limited increase in the company’s full-year earnings outlook. Linde’s Q2 results showed revenue up 9.3% year over year to $9.29 billion and adjusted EPS rising 10% to $4.50, with robust electronics demand helping drive the beat. Still, adjusted operating margin slipped 60 basis points to 29.5% as inflationary costs diluted pricing and productivity gains. While Linde raised the bottom end of its FY2026 adjusted EPS forecast to $17.70 from $17.60, leaving the top end at $17.90, the relatively small upgrade suggested a more measured earnings trajectory than investors had anticipated.

Nevertheless, rival The Sherwin-Williams Company (SHW) has underperformed LIN stock. Shares of Sherwin-Williams have dipped 5.8% over the past 52 weeks and are up 6.4% YTD.

Analysts are bullish about its prospects. The stock has a consensus rating of “Strong Buy” from 24 analysts covering it, and the mean price target of $550 represents a 12.4% premium to current levels.